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EP NC 23- Weaponize Your Credit with Merrill Chandler

Most real estate investors are in the note business not just for money but for other fundamental reasons. They do it because they don’t want to be stuck in a nine to five job or they want to create a legacy for their children, their family, and their loved ones. Merrill Chandler with Credit Sense discusses how to weaponize your credit, that is, how to prepare and clean your credit profile to make you more fundable to receive lines of credits from banks for your real estate and note business. Merrill shared that the concept started when he became dissatisfied with the results of credit repair. Leveraging his extensive knowledge of credit profiles and credit restoration, he founded Credit Sense and developed a revolutionary process that could optimize credit profiles and scores. Since then, he’s helped thousands of borrowers and note buyers nationwide.

Listen to the podcast here:

Weaponize Your Credit with Merrill Chandler

We have Merrill Chandler here with us from Credit Sense. If you’ve never heard of them or don’t know what they do or what Merrill does, they have an interesting niche in the real estate and the note space. Merrill will teach you how to, as he affectionately calls it, weaponize your credit and grow your fundability. That is not as an individual but also as a business. That is beyond valuable for much of what we do and what our goals and where we’re headed. Merrill, I will go ahead and turn this over to you.

This is my third or fourth adventure with you. Welcome everybody. We’re glad to have you here. I’ve got some amazing news to deliver. All the time we have clients still come and watch because I always deliver the most recent tech right in the Note CAMP. We’ve got some astounding news guys about what’s happening in the financial markets that is supportive of what we’re doing is no fires.

Grab a notepad, you’re going to take a lot of notes and get your camera ready. You’ll screenshot a bunch, too.

Get ready, no doubt. First of all, we’re going to be talking about a new concept that we’re delivering on and what that is how to deliver my promise to you. We’ve been projecting on to you what your end game is, what your goal is. My promise to you by the end of this presentation, I’m going to show you how to fund your Z. What I mean by Z is in this A to Z of life, we always have that end game. You have that goal. You guys aren’t note buyers because you love buying notes. You do it so you don’t have to be in the nine to five grind. You do it so that you can create a legacy for your children, your family, your loved ones; you do it for more fundamental reasons than money. Money’s awesome, but I want to fund your Z, whatever that is. For lack of knowing each and every one of you, your Z may include up to a million dollars in true business credit. We’re going to learn the difference, but what if I was able to deliver you on a silver platter, lenders that were willing to give you literally a million dollars in business credit? This is no joke. I know that there are clients on with us today who promised to watch because I’m always delivering new tech and the newest updates, especially in the legislative branch. What’s going on? For those of you who haven’t been here before, I’m going to tell you a secret. I’m going to tell you a secret you have never heard before. This is the most astounding reveal of your business lifetime.

Funding is the key to your note investing success. I know it’s a revelation. You’ve never had this thought before. It’s revolutionary. There’s more. If you were fundable, lenders will give you money. We’re going to drill down into this. Get under the hood, and find out what this means. No joke. If you’re fundable, lenders will give you money, but you don’t even know what fundable means. We have clients come in all the time who look at us and say, “I’ve got 780 credit scores. I’ve got 820 credit scores. Why won’t anybody give me money?” I’m going to show you what the fundamentals are of why these lenders are not giving you money regardless of your score. I’m going to be sharing with people, very Note CAMP people, who waited three years because they were embarrassed about their credit score, not knowing that we could fast track them to fundability. What do we mean by lender’s giving you money? I’m not talking about any old money. I’m talking about the holy grail of money. I’m talking about stated income, unsecured, check-writing capacity with no income verification, no tax returns, 3% to 6%, not from me but from dozens of top tier banks. That’s what I’m going to show you how to qualify for. Those criteria, I’m not talking about any old money and none of this, none of it reports to your personal credit, which we’ll find out how valuable that is. All of this is true business funding. First of all, let’s talk about why you need to have some urgency in this? Especially if you’ve been with me for the last three or four Note CAMPs and you haven’t pulled the trigger.

Have you heard about the Dodd-Frank amendments that are coming up? Already passed the Senate, headed to the house, Trump has already said he would sign off on it. What does it mean? Dodd-Frank was where closed down the lending and constricted the lending capacity of banks. Tier three, which are community banks, credit unions, and tier two which are the BB&Ts and the PNCs, the US banks, the KeyBanks. All of those are able to give higher credit lines if it’s passed, higher credit lines for the same underwriting criteria. You have to pass the underwriting criteria, but they are going to be able to give more money for every single application that is approved. This is a big freaking deal because we’re already having people walk out with stated income with $30,000, $40,000, $50,000 out of the gate, but they are going to be authorized to give more money for each application. You’ve got to pass muster, but when you do, there’s more money available for us. It’s going to take some time. That’s why you’ve got to pay attention here. A quick rundown. Many of you have heard of me or know about me. I cofounded Lexington Law Firm and Lexington is the single largest credit repair law firm in the country. They knock it out of the park when it comes to disputing. When I was there I saw thousands of credit profiles and discovered that there were patterns that allowed individuals to qualify or not qualify for credit. It was the equivalent of reverse engineering, the FICO algorithm. At the time, when I was at Lexington, when I co-founded it, I was doing real estate investing. I, like you, was trying to work out how to create the highest yield on my money.

I got denied for cheap money, like you are. The really cheap money, 3%, 3.5% lines of credit that would make my deals sale. I had to use hard money and private lenders. Nothing on these guys, but if you know how to get cheap money, don’t you make more deals? Hard money costs you what? 12% to 15%, two to five points depending on who you’re using. Private lenders are taking some of your deal money. The question, like you, my profits went down the toilet because I was giving them up. Remember I’m in the credit space. I’m like, “Why can’t I have an opportunity to get low interest money and vast quantities of it?” It was impossible to do that math, it’s impossible for you to do the math, like the PTF. Why am I not getting this? As I put all this together, I understood that this was a game with points. There’s a score, and it’s not a credit score, there’s an underwriting score. There’s an application score, there is scoring to this funding games. What do I do? I asked you the question I’ve asked every single client who’s ever joined me in the last twenty years, and that is can you win a game if you don’t know the rules? What’s the answer, Stephanie? It’s a big, fat, hairy no. You cannot win a game if you don’t know the rules, and yet the players, the bureaus, the banks, FICO, everybody knows these rules that are playing by the rules and you and I didn’t know them. What now? What was I to do? I knew there had to be a better way.

Bracket that then I’m invited over to FICO. I’m doing credit optimization, I know how to build a credit to a file that’s fundable, but I didn’t do the math. I couldn’t figure out the math yet on how to get the funding. What was the magic? I knew how to create 850 credit profiles that rocked it, couldn’t figure out the funding dynamic. We go FICO. By the way, we’re going to FICO again in two weeks, more to come. Note CAMP 6, I’m going to blow your mind with more awesome from FICO. We go to FICO and we’re sitting there after the first day, hair blown back. A guy walks up, doesn’t introduce himself yet. He walks up and he says, “Tell me about your business model.” He sits down at our table. Come to find out, it’s Will Lansing, the CEO of FICO. He’s asking me these questions without telling me who he is. “Tell me about your business model,” and I say, “We help borrowers become more fundable. We make their credit profiles look like a lender wants to lend to them.” I said, “You optimize lending. You’re trying to minimize defaults, minimize bankruptcies, minimize losses. You’re optimizing lending but at the same time we’re optimizing the borrower space. We’re optimizing these borrowers.” He’s like, “Let me have you talk to my score development team.”

These are the credit gods. I am now speaking to credit gods and he sets us up to meet with the team. We met with all of these people. On the right was the business and underwriting development crew, and Janice and Julie were part of the personal. These guys are the Chief Scientists of FICO. Notice in the background there’s an NDA police guy. His job was to make sure we didn’t get any of the secret sauce, but they allowed me that the CEO said, “You put together some questions and we’ll do our best to answer them without giving the secret sauce.” I put together 100 questions that outlined all of this, but the most important thing. Remember, the beauty about connecting dots guys is that you can connect dots that don’t seem related. FICO, these scientists didn’t know what they were telling us because they didn’t know what we knew. They started telling us that, “We have a new business scoring service coming out. It’s called liquid scoring engine and it’s for small business scoring services.” It’s out there and already done. It combines DNP data with consumer bureau data. First thought we connected. First secret I’m telling you, is anybody who’s trying to build a Paydex score is in the last century when it comes to the tech. FICO is buying the Dun and Bradstreet data and using it to score all on its own. Paydex is old news. There’s somebody saying, “You need to get a Federal Express account and Uline account and established trade lines.” Old tech, run like the wind because it’s not going to buy you anything out in the marketplace.

They said, “By the way, our entire purpose for this liquid credit engine is to drive automatic line increases. Automatic limit increases.” That doesn’t mean anything to you, but let me connect the dots for you. How many of you have received in an email or in a letter, “We raised your credit limit, $5,000.” A lot of us, and the point is that there is software driving that. Every time humanize are on an application or on limit increased request, they lose money. It’s bad business for them, on the personal side, they trust the algorithm that does all the math in calculating not your score, in calculating how you behave with money and they will give you more money if you have the right behaviors. Liquid credit, this FICO engine for business is designed to raise limits automatically if you behave the right way. They don’t know what they said. Brad and I we’re kicking each other under the under the table going, “Are you kidding me? This is amazing news because if we know the math, we can behave accordingly and they will give us more free money without income verification. Unsecured, 3% to 6%.” When we came out of here we’re like, “This is brand new tech and we came off of Mount Olympus, the Credit Mount Olympus.” We came down and started teaching our clients this new technology, and it is the Holy Grail. We started picking up these stated income. No tax returns, unsecured, 3% to 6% interest accounts. It was amazing. That’s what all of your fellow Note CAMPers have joined when they partner up with us to create these credit lines.

Weaponize Your Credit: If you were fundable, lenders will give you money.

What do you need? What is it that you need them? Did we come back from FICO? Next week, I’m going to spend with the same people. With us, you get dialed in tech at every step of the way. All you need is to fit the formula. It’s not magic. You have to know the formula and then you’ll fit the formula. You bring everything and it’s not hard. You’ve got to know what it is. Found out this was game changer. What we ran into was until now for the old tech, for the old Paydex, for all the old school last century, $1 million. How easy has it been? It hasn’t been easy. We can’t even comprehend it. People look at me going, “I don’t believe you,” and I’m like, “It’s okay, I understand.” When somebody shows a flashlight in the medieval world, of course it looks magic and that person’s going to get thrown in a bonfire because it’s technology that they don’t understand. I understand if you don’t believe me, my point is I want to show you step by step how to do this, from something you can relate. What we put together based on all of this was the ultimate funding formula. The ultimate funding formula is designed to get you your Z. Fund your Z, whatever that is. Some clients are scared to death to even get $100,000. Great, your Z is $100,000. We can go from there. The beauty of the funding formula is you get as much money as you implement the formula. It’s like priming a pump and then putting your glass under the faucet. Every time you prime the pump, the water comes out and fills your glass, to the brim.

It’s easy to get $5,000. You and I both know, most of you probably have a credit card or credit line worth $5,000.You pull out that card, look at it and go, “Yes, there’s $5,000.” You’ll discount it because you did it, you’ll discount it that it was easy. How do we make that same easy translate into a million dollars? We can only do that by knowing this new technology, automatic underwriting and automatic limit increases. Every time you make an application, there’s what’s called an application score. This application score measures the data that you’re putting on your application against data reported by the bureaus. If you’re off 1%, 5%, 15%, you’ll get docked and thrown out of underwriting because the data doesn’t match. The second secret we’re talking about today is you are a data set. You’re not a human being when it comes to getting funding. You’re a set of data. That’s good news. I want to be a set of data because if I align my data to what they’re looking for, I get money. We get money. We’ve got to be capable of being underwritten without humanize and we got to behave a certain way that the limits continue to increase, may I add, all on their own. Like you’ve been getting a credit card increases on your personal side. Those are the two pieces that we’re going to talk about.

In automatic underwriting, let’s take that $5,000 and we go to lender number one. We vet lenders. We ask fourteen key questions. Why? We don’t take any money, we’re not credit seagulls, were credit eagles. We don’t bad Juju to respond to any offering given by any bank saying, “Qualify now for up to $100,000 business lines or credit.” Stop it. Don’t do it. The second you respond to those offers, you’re on a consumer list. You’re not on a strategic borrower list. You’re not directing traffic, they are. They are smarter than you are in giving you money. That’s not an insult, it’s a fact. You have got to become a credit eagle. You’ve got to have vision, strategy and be proactive. Stop responding. Stop filling out applications anywhere at any time. You need to know how to go find these things, and the way you do it is through those fourteen questions. Those fourteen questions then allow us to go find the right kind of lender.

I’m going to use the $1 million as a as an example. You can do this with $10,000, $200,000, $500,000, whatever your Z is, you can do it. It’s the number of times you prime the pump and put your glass under money faucet. You ask these fourteen questions. You find out who you want to work with. Find out the quality of money that you’re getting and acceptable terms, then every six months that money starts growing through automatic limit increases. Automatic limit increases are driven by the bank side, not by your side. You understand this? If you behave correctly with the money, they want to give you more and more and more. You, private lenders out there, I know there’s a bunch of private lenders out there. If somebody behaved perfectly and treating your money with difference and respect, would you give them more money? Yes. Hard money people love good fix and flippers, good note buyers because they want more business. That $200,000 becomes $500,000, that $500,000 finally becomes $1 million. It can take 24 months. It takes 60 months. I’m assuming you don’t mind holding up the glass and putting more money into it. Fund your Z. The ultimate funding formula. Would you like me to walk you through the funding formula? I’m literally going to tell you.

The ultimate funding formula has five stages. Six stages if you count finding out what your Z is. How much money do you want? Not how much do you want, because if you never had a million dollars, you can’t handle a million dollars. If you find out that you can make $100,000 work, take it to $200,000, take it to $300,000, and take it to $400,000. Keep turning on that faucet. Let’s take a look at each one of these in order. The first thing you need to do is have a fundable personal credit identity. You’ve got to have a personal credit profile that everybody looks at and goes, “I want to lend them money.” You’re going to be personally guaranteeing every dime you borrow for the foreseeable future. We’re talking five plus years. Dodd-Frank is not eliminating the current underwriting criteria. They’re giving more money every time we get approved. The first thing you got to do is don’t cook your golden goose. Your personal credit profile is the goose that lays golden eggs. The problem is many of you have gone to trainings, you’ve gone to places and they offer somebody, “Let’s fund the education program.”What they do is they cook your goose. “Look at this personal credit profile.” That’s going to make one delicious meal. I like to say one and done. They cooked your goose, your available credit goes up, your scores go down when you charge it up and now you’re stuck. We have ladders to climb out of that hole, but I’m saying from now on, you don’t cook your golden goose; you create opportunities for you to use these golden eggs of business lines of credit, commercial loans, everything that you need to be able to do.

Let me tell you about Matt and Sandra. Matt and Sandra come to me and they were already in the middle of one of these financing deals and the guy says, “I’m talking to their lender and the lender started asking, clarifying questions,” and he said, “I’m feeling a little ambushed here.” I responded saying, “How do clarifying questions create the feeling of being ambushed?” Unless you have something to hide, come to find out they’re not getting commercial credit. They’re getting private money credit at 7% to 12%. They’re getting the information from and they need $10,000 a month going through their personal checking account before they will even be lent to. It’s all on their personal credit, not on business. How to cook your golden goose? You come to me like Matt and Sandra and they say, “Here’s 21,” look at that 21 personal accounts, 26 and 27 personal accounts. You butcher your credit and when you kill your goose, when you cook your goose, there are no more golden eggs. You have to bring that goose back to health and that’s how you do it through personal credit.

Weaponize Your Credit: You have to have awesome trade lines in order to improve your fundability.

What business credit is not, I’m going to give you a hint. Use this for the rest of your life. It saved the financial souls of dozens of listeners, but the bottom line is business credit is if it reports on your personal credit report, it’s not business credit. American Express Blue reports on your personal. I don’t care what it says on the card. I don’t care what it says on the statement. I don’t care. Capital One does not offer a business account. The business, their slate, their keystone, there are a number of Capital Ones, all of them report on your personal profile. They are not credit business accounts. You’re killing your goose every single time you put in new low value card onto your personal credit. Don’t cook your goose. Optimize your personal identity. Before I knew what I was doing, I applied under any version of my name and it created confusion and lowered my limits when I got approved. I have 800 plus credit scores, but I still get lower limits because they don’t know exactly which channel I am. I had six address variations. If you take us up on our offer and get a fundability analysis, you’re going to pull your credit and you’re going to be stunned. It’s going to knock you on your hind quarters because they don’t know exactly which data set they are lending to. Remember, you’re not a person. They don’t have time to look at your driver’s license. That’s our job is to clean that up. You’ve got to have a great personal credit identity.

Optimize your delete negative listings. Let me tell you about Frank. Frank comes in, he is a Note CAMPer. We did a fundability analysis. He comes to me and he says, “I think I’m ready.” “What do you mean you’re ready?” He goes, “Three years ago, I had a fundability analysis with you and I was too embarrassed to join because I wasn’t fundable. I wanted to improve my credit.” Look at the scores. He had low to mid 500s three years earlier, and he came to us with 619. Look at his scores now. If you have bad credit, it’s just another thing that’s in the way of fundability. We don’t treat you differently. It’s one more set of tasks, one more track to put you on to get you into fundability mode. Do not wait because you have bad credit. We can do whatever it takes. Even if we can’t delete a negative item, we can overwhelm it with positive points, like we did here. Believe it or not, these scores include one paid collection and one unpaid lien. It got affidavits on it. We can build profiles with derogs on them. Do not wait but we can optimize or delete derogatory accounts.

The next thing is you’ve got to optimize your trade lines. Let me tell you about Robert. Robert comes to us. These are his scores when it comes to us. Straight up, came to us with these scores and he’s like, “Why can’t I get funding? Why can’t I get funding?” The whole point was he’s looking at his profile from a score perspective. You’ve been trained to look at everything from a score perspective. Underwriters look at score for number three. It’s the quality of your profile, your 24 month look-back period then your score. He has a Credit First credit union, a $5,000 credit union credit card. He’s got a Lowe’s, a Best Buy and Home Depot because he’s into rehabbing his notes, anybody who he does repos on or foreclosures. What you got to understand is that all a high credit score means is you get more of what you got. His $10,000 Lowe’s account means you’re going to get the very best rates and very best interest and very best credit line from any other mall store low value card. US Bank, Chase, Bank of America, nobody is going to give you a $50,000 business line of credit on that reputation.

You have to have awesome trade lines in order to improve your fundability. The Bank of Americas, the tier twos and tier threes, the US Banks, the PNCs, the BB&Ts, the KeyBanks and your community banks and credit unions all look at a distinguished profile, a professional borrower profile and go, “I want to give them my money too.” The higher the limit, the higher your business credit line limit. If you got $5,000, they’ll try you out, maybe. Even if you have these types of distinguished accounts, if you only have $3,000, $5,000, do you think they’re going to give you a $50,000 business line? No. We’ve got to optimize your personal trade lines to make sure that they are fundable. Simultaneously, while we’re working on your personal credit profile, we’re going to work on the fundability of your business. You have to be prepared for a 30-minute underwriting. Underwriters are going to check you out and say yes or say no. Especially when you start asking those fourteen intelligent questions, they’re going to say, “What about this person do I love?” I’m going to Google them. I’m going to check them out. I’m going to go to their Better Business Bureau. I’m going to find out if they’re legit. You have to be prepared for them to vet you when you start vetting them. All that’s handled in this funding formula. What do I mean by the right kinds of things? You’ve got to have the right SIC codes, the NAICS codes, those are fundable codes. Bankers lend to the type of code you have. You’ve got to have all your business filings in place.

You need a Dun and Bradstreet number, not a Paydex score, just a D&B number, so when we start reporting business credit to your profile, you have a place for it to store it and FICO’s liquid credit has a place to draw from. You can’t have red flag words. Everybody gets mad at me every single time, Stephanie, that we do this. If your business name includes anyone of these things and in your marketplace that includes the word notes, you will never ever get that Holy Grail money. That unsecured business credit that is 3% to 6%, never going to get it. They will fund you at 50% to 60% right and left on secured, if you’re a real estate or a note buying organization, but they will never ever fund you for the good money, the big money. Our funding formula has the solution to that. We separate you and your skill set from the deals you do. They will never fund your deals, but they will fund your intelligence, your skill set, your value to your community. They will fund you. They will not fund your deals. The funding formula separates those two and makes it an easy play. Make sure that we have all of that. We’ve got to take care of them. Once it’s legally fundable, then you got to look good because they’re going to start vetting you the second you start vetting a lender. They’re going to Google you, and if you are not a legit businessman or businesswoman, you’re going to get jack from them. You’ve got to play it in the online world so that you know. This isn’t about deceiving anybody. You got to be legit. Our funding formula will help you establish the legitimacy of what your business is doing. We trust that you’re real in business. We’ve got to make that reality be published for underwriters to see.

Then you got to speak business funding fluently. Talking the talk is what happens when you vet the lender. Let’s go through a little more detail. You’re going to vet these lenders. The ones you choose, you’re going to open up business checking accounts to establish a relationship. Then you’re going to create a checking account traffic that represents what you’re doing in your current checking out. These are all new business checking accounts, by the way. In your current checking account, you’re putting through $1,000, $10,000, $100,000 through your business. We want to use those same numbers over in these new checking accounts that hit all of the positive triggers for fundability. The underwriting software has to see that same checking account, but you know what they hate? Over here you guys fix, flip, fix, flip. Your score’s are going up and down. Your accounts are going up and down. When it comes to fundability and underwriting software, we want to show perfect business with a slight increase over time. Number four, when they offer you business lines of credit, we say no in the kindest, coyest way. The reason why I say coy, let me tell you about my recent client, Tim. This guy is aggressive. He’s gotten through his entire launch phase in three weeks. It’s amazing his commitment. He’s out there working on vetting lenders and he calls up lender and he goes, “You got unsecured, 3% to 6% business lines of credit that has stated income?” This guy shuts him down, “Such a pleasure speaking with you. Look at the time, I got to go.” Everything but hangs up on him just shuts down. Tim comes back to me and he goes, “What? Why did that happen?” I’m like, “You just asked to date his eighteen-year-old virgin daughter. You don’t just come at him with the Holy Grail. You don’t do that.” You have to establish a trusting relationship with your lender.

Weaponize Your Credit: What do you need to do to get your million? It’s super simple. Fundability analysis.

Do you relate to business lending? The number one underwriting criteria is relationship. You open up these business checking accounts. You get a business credit card. Now these business credit cards are awesome because they established relationship. More importantly, they come over here and they offload what you’ve put on your personal credit cards, so that we can keep the golden goose firing off those eggs. Every one of these lenders guys, every one of these lenders is an egg that is going to hatch a beautiful credit line. When they offer you a business credit line, you say, “No, thank you. I’m not interested.” What? That seems counterproductive. The point is, is that they don’t lend to people who want money, period. In your mind, you’re going, “I need money. I got deals I can do. There are more deals than there are money.” As I understand it, your outfit has gobs. You guys get huge resources of notes that you’re able to sell amongst each other and to each other in big tranches. More money, more deals. Play the game, because if they trust you with their money, they will give you more and more.

Next, once you talk the talk and they invest in you by giving you business checking accounts and business credit cards, then you have to walk the walk. We start acting like a sophisticated borrower. A professional borrower. If my job, if somebody said, “What do you do for your clients, Merrill?” “I make them professional borrowers.” First of all, we talked about before, treat your lender. There’s money with deference and respect. You don’t run up balances in the first 90 days and we’ve got new news from FICO, never use more than 40% of your credit limit. Otherwise you end up in risk. Now you’re saying, “If somebody gives me $100,000, I can only use $40,000 of it.” How much are you using right now? Don’t be greedy. Work this process. Work to process because ten times $100,000 is $400,000, if at the 40%. Once you’re finished growing your portfolio of credit lines, we’ll teach you how to use 95% of it. The second you go over 40% guys, they will stop automatic limit increases. Play the game to win. If you’re not using money now except over on your personal side which kills your goose. Play this game to win and you can do this as many times as you want. Ask to use their money. If you’re going to run up a bounce, ask them, call up the bank manager, and call up your contact. “Susan, I’m going to put $20,000 on this. Is that okay?” She’s like, “Of course it’s okay.” “No, I’m asking. It’s your money. I want to know that it’s okay and will you make a note in my file in case risk ever looks at me, that I’m doing this deliberately and asking for it intentionally.” Besides being befuddled and out of control like, “Who the hell is this person?” They’re going to say you see a line of those. It goes to risk for any reason, you know you’re approaching 90, 95% when it goes to risk their like, we got this guy. This woman, she knows exactly what she’s doing.

We trust her with our money. Ensure the risk department’s fully informed. Keep those lines of communication open. Then you play to win. Follow the rules exactly the trigger, these automatic limited growth and do it as many times as you want. We do three, five, ten, it doesn’t matter. In fact, what you’re doing is you’re buying a training package when you become my client, and this training package uses one of your entities as a funding entity. Those are the training wheels. You’re here to learn how the funding formula works and to practice it on one, whatever level you want to go. Hundred grand, million doesn’t matter to me. Once you have the formula, just turn on that faucet. You get to implement as any times as you want. Then you rinse and repeat this process, the funding formula, until you have all Z dollars you want.

You want to know how does this work? How do we take care of the people with less than perfect credit? How do we take care of the high scores and un-fundable? How do we take people with no businesses? Some of you barely learned about notes and you’re starting and you need money before you can do deals. Everybody teaches that you could do it with no money down or you can do it with no resources, but the easiest, fastest way is to have inexpensive money where you can write a check and say, “I’d like those three notes. Thank you so much.” They’ll be like, “I’d love to take your money,” and then you guys do your magic. All the things you’re learning in this Note CAMP. Easy money makes those deals easier. I’ll let you answer this. Can you win a game if you do know the rules? It is a resounding absolute yes. If you are tired of not knowing the rules of the funding game, if you think it’s a mystery, or do you feel anxiety when you go to fill out an application? How do you feel when you get denied? How would you like to feel like you don’t go apply unless you know it’s a win for you? Not having the resources you want, not doing more of what you love. How about growing your note business? What does it feel to chase money? If you have to chase something, wouldn’t you rather chase your Z, that thing that isn’t money, but is the reason why you’re doing all of this? Wouldn’t you rather spend your time growing your family rather than your business?

Growing your mission in life, your message. I have friends who are missionaries as a result because their empire’s on autopilot. Spread the word that you believe in. That’s why we’re doing this. We get lost sometimes in not knowing and getting down into the mechanics of it. If you can write a check by notes, have a team that either manages those notes for you and or they don’t. They don’t end up paying you foreclose and fix and flip. It’s a machine, you’re learning from every single person that it can be a machine. The fuel for that machine is your personal credit profile, the fundability of your business and the money those things gets you. What if getting that $1 million dollars was easy? I don’t care if it’s $100,000, what if it was easy? What if I can personally guarantee, me, my team backs my word. What if I could guarantee the first $100,000, no questions asked, guaranteed support, until you have you can take off those training wheels. You’re buying a package, you’re buying a set of skills, and those training wheels stay on until you have your first $100,000.What if the funding formula is designed to take you to $1 million just for one entity? I don’t care how many entities you do it; I don’t charge you for that. We practice on one and then you fund however many things that you want, because now you know how. What if the entire plan is designed to take you to ten credit lines worth $100,000 each?

What if I’m awesome? What if me and my team have only had one complaint ever in 25 years from a client? What if I keep my promises? What if you can trust me and I can help you so that banks trust you? Just what if? I can’t know that. Talk to your Note CAMPers. Put it out on the bulletins. Ask what their experience is. The vast majority will say they’re awesome and I need to do more. This is a partnership. We’re not going to join an LLC together. We’re going to do a program together. Do you know how much money, Stephanie, I would make if I work actually work in 1% partner in every single LLC that we got funding? When I say partner, I’m talking about us being together on this project to get your fundability and your personal profile and make that goose lay golden egg after golden egg, after golden egg. I can deliver. I don’t take more business than I can handle. My team, they’re awesome and you’ll find out for yourself how amazing they are. What if this isn’t magic? What if you’re in the credit equivalent, the funding equivalent of the medieval times and I showed you a flashlight? Do you have the capacity to go, “Hold it, what if this is new tech?” What if this is a next level funding system that takes all of the technology that lenders are using and brings it to optimizing borrowing, making you a professional borrower.

Weaponize Your Credit: You have to establish a trusting relationship with your lender.

What if this is a system? It removes the guesswork from creating a flood of repeatable funding and profit. I can’t promise profit. I can promise cheap money. I tell people all the time, if I give you $100,000, $200,000, $300,000, if I’m giving a gun to a two year old. The Texans always remind me that they have concealed carry licensing for their one year olds at pre-school. Am I putting a revolver in the hands of a two year old? You’re in charge of your profits. Listen to what Scott is telling you. Listen to what your subject matter experts are doing. I’m not going to tell you how to do notes. I’m going to tell you how to get money for notes, and then you got to be a bad ass at doing the note business. You’re at the right place to learn the right things. Now get the money so you can do exactly what you want. What if there are over 500 happy, new buyers, real estate investor, and business owners all across the country who have done this? If you saw my wall of fame, I have pictures. Everybody comes to the events that we’re going to be in Baltimore for all you Baltimore people. We’re going to be in Baltimore at the Think Realty Conference. I’m people around the country how to do this. If you’re there, come and take a picture with us, we’d love to talk to you. Everybody asks, what is the cost to do this? If you go to my website right now and I challenge you, go to my website right now and the three tracks, the business funding track, the personal optimization track and the credit recovery track are all on there and that’s the price. Straight up.

People buy this from me online, but because Scott and I had been doing this for years together and he has your back and he talks to me about how to take care of you guys and has become and educate you. What if this only costs $5,000? What if I’m going to provide you business funding optimization and I’m going to throw in personal and anybody who needs recovery in that price? I will do your business funding and I will throw in personal optimization and personal credit recovery for anybody who has less than perfect credit. That is our price. $3,000 for $5 million, $5,000 for $1 million, and $10,000 for $1 million. I do have a concierge. If you got more money than time, we have a personalized service for $10,000. $5,000, disregard that $3,000, because $3,000 is what it costs to just do personal optimization. No businesses included. That’s our question for you. What do you need to do to get your million? It’s super simple. Fundability analysis. I don’t know what you need. I don’t know how long it’s going to take. I’ve got to look at your profile and ask you questions about your business to know exactly what we’re doing. I’ve got to know guys. Here’s the kicker. What if I gave you the fundability analysis for free? It’s $300, $297 on the website. Go look it up. I’m not lying to you. People get analysis at cost all the time.

What do you get in your fundability analysis? First of all, we’re going to bring the tech straight from the funding gods. We’re going to FICO World in 2018. See that gentleman taking a picture of the FICO conference? That’s Brad Burnett, that’s my funding officer. They took a picture of him taking a picture of the 2016 FICO World. We’re going back and we will bring you tech straight from the funding gods. We’re going to evaluate your fundability on four areas: utilization, fundability of your credit profile, fundability of your business and how much money you have for traffic patterns. All of those things weigh in. It is not in our way to start from 100% utilization, no fundable credit profile, no business and no money. It takes more time but we have clients who are just barely beginning and they are building a profile from the ground up. They’re creating revenues from the ground up.

Next in that fundability analysis, we’re going to evaluate your credit profile. We’re going to find out how you compare, how you stack up against underwriter guidelines. You got to find out the truth. We’re going to find out what your account values look like. Remember the 40% low grade junk cards down in the bottom right hand corner? You’re not going to get the big credit lines up in the top left hand corner. We’ve got to find out and evaluate your account value. Then we’re going to run your business through a fundability matrix. We want to know how fundable you already are. Some of you maybe at the 95th percentile, some of you may be at the 5th percentile. It doesn’t matter. Find out the truth, but when we do all this evaluation, we’ll be able to estimate your timetable for delivery of your first $20,000, $50,000, $100,000 guaranteed, and then all the way to $1 million. We can estimate the time table based on the fundability of your personal profile and the business.

As an extra bonus, not many of our clients figure out how to find 45 points in 45 days to add to their profile. We have people all the time come up to us in the booth or send us email saying, “I saw your presentation and I implemented some of those things. My score went up 70 points,” and I’m like, “Give me money.” I said that was for free, but you implemented it and you saw how valuable it is, so you can send me a day check. Because it’s true, this is the stuff that we give you for free. Good news, I’m making a formal announcement. Good news is by summer this entire process will be online for our clients. We have started an online client portal so that you can have all the data in your face anytime you want and know how to optimize on the fly rather than going through the process we do. We’re going to cut this time in half. Get started. Figure it out. What’s the catch? What if there isn’t one? What if it’s $300 on the website and I do it all for free. Everybody knows this from Note CAMP two, three and four. The first three people; I will do your analysis. That means those who have scheduled analysis, I take the first three. What that means is step one, go to MyFICO.com. Even if we never talk, go to myFICO.com. Find out the truth of your credit profile. These are 28 FICO scores, there are actually 85 FICO scores but we won’t get into that. When you’re a client, you’re going to find out about all this stuff. Go to myFICO and order the Ultimate 3B for 29.

You don’t need it monthly, just need it quarterly. There’s too much movement in one 30 day period. Go to myFICO, order your credit report, and then send your login or PDF of that credit report. Now you have to send it in the right kind of PDF. My fundability team will help you do that. Send us the member logins. There is no actionable data. All of the scores, all of your personal information is truncated and all of the account numbers are truncated. There’s no way for us to mess with your data. Send us the login, but you have to have a login before you get scheduled. No login or PDF, no credit report, no free analysis. If you want me to do it, you’ve got to be in the first three to get that myFICO in. What if I guaranteed that you will be blown away from your analysis? Guaranteed. You will be blown away. What we’re trying to accomplish here, and what we’re committed to is all Note CAMP attendees, there is a QR code, if you want to go straight to this, you can text Note CAMP5 to 678-506-7543. Follow the prompts. That $49.97 has easy installment payments. We can customize a payment process just for you. The minimum is $200. If you can’t afford $200, you’re not in the right play. If you can afford more, I’m not giving you $200. Know this; if you’ve got it, we’re doing it. I’m saying don’t get an analysis if you can’t afford $200 towards this. We want to make sure that this thing gets done quickly and easily.

I’m trying to be fair. Stephanie knows me, Scott knows me. I don’t mince words. Words that come out of my mouth you can count on. Bottom line, text Note CAMP, follow those prompts. Order your myFICO credit report and let’s go to town. If I round up, give me the $3. If I round up then don’t hate me. If you insist on $49.97, I’ll give it to you and that is the cash price. That is the cash price, meaning we drafted from checking accounts or otherwise. If you need to put it on a credit card, you and I are going to split the 5% fees. If that’s in your way, you’ll suck as a client because I’m going to tell you a lot of things to do that you may not like, and I’m still going to get you a million dollars in business lines of credit. Can I be any more forthright, Stephanie?

No. Like Scott, you’re very direct. Even from the last Note CAMP to this one, you can look at the numbers and say, “It’s going to take 90 days to get to this milestone, possibly two years to get to this milestone,” but the reality is time is going to pass regardless.

All the people who haven’t pulled the trigger from Note CAMP two and three, you would have already been sitting on your $200,000, $300,000. If you think, “I can’t get in,” don’t do credit card stacking. Don’t go out there for somebody who’s going to butcher your personal credit profile and then charge you gobs of money to liquidate those and you’re going to end up with bad credit on your personal, and a dead goose. Play this game and if this much money you don’t get the value, don’t do it. You would suck as a client. If you can’t see the value of taking the time to invest in a long-term play, don’t do this. This is not for you because this is a medium to long-term plate. A year is not a long time, but I can only do with your credit profile. I can only optimize your credit profile after you give me what you’ve given me, which sometimes isn’t pretty. I’m not holding it against you. You don’t get to hold timetables against me. We’ve had people in $100,000 in five to six months. Real dollars, not quick cash off your personal credit report. Real dollars, but you got to have the right profile. Let’s do this.

We have a question, “Are you saying in your example with Matt and Sandra that they had too many credit lines open even though they hadn’t run up a lot of credit? Closing the accounts will wipe out their history and it would lower the scores potentially.”

First of all, do not close a single account. If you’re not working with me, it is better that you keep everything open then close any account. You do not know its point contribution to your credit profile. I do. I rank everyone one of these according to underwriting guidelines and its value contribution to your profile. Do not close any unless you opened up a brand new mall store card or junk card or online card in the last 30 days. I give you permission to go close that one. Anything over 30 days, do not touch it. Do not touch it.

We have a question, “If you have long time store credit cards, for example, Sears, Kohl’s, etc., would you close them?”

Especially if they’re over six months, do not close them. You are going to take a hit in your profile. They are contributing to your profile, but what they’re also witnessing is that you are a consumer borrower, not a professional borrower. Ultimately in my game, you got to get rid of those cards and ultimately I would dispute them and remove them from your credit profile to the best of my ability. This is a mine field, this is not a sales pitch. Don’t do this. If you don’t dig it, don’t do it, but I’m telling you, this is a minefield. Trying to repair a flashlight as a medieval blacksmith, you’re just going to grab a hammer and start beating on it. Don’t mess with the technology unless you know what you’re doing. Bottom line is, if you have a number of those cards, you’re a consumer borrower and they’re going to continue to pitch you and pitch you a bit. We’ve until people get off the list so that no one’s pitching you, because being on the list is a negative indicators, not a derogatory account. It’s a negative indicator. Don’t touch any accounts guys, unless you know what you’re doing. I had been helped you to ask the question. Let’s figure out payments and do this right. Become professional borrowers.

We have a question, “The 40% rule, does that apply to personal credit as well?”

Yes it does, it absolutely applies to personal credit. Do not extend over 40%. It used to be 50%, Note CAMP four, it was 50% until we got because we have consultations with FICO on the regular, and they just downgraded in their new software which is going across FICO eight across all over the country. FICO eight is a 40 percentile, so personal, never more than 40%and you’re probably not going to get limited increases or being able to execute on our strategies until we get those down to 40%. Here’s the good news, if you have 80%, 90% balances, part of the funding formula is to get you from that high utilization down to low utilizations, and there are several steps that we can take. We also rank all of these and we will tell you which ones to pay off first, second, third, in order to maximize dollar for dollar. Every dollar you spend will get the highest yield on your credit profile improvement and a raise in your score. Remember I said, if you have 100% utilization, we can still take you as a client. It takes longer depending on what your revenues are to roll these down. A key is, now I’m going to tell you not cash flow, but credit. Paying your highest interest is not necessarily the smartest means to optimize the profiles. Every institution has a rank and a value contribution. Every one of those, the higher the ranking and contribution, the higher your point gain for every dollar you spend in retiring debt.

It’s great information and a lot of it is what we think we know. It’s not for lack of research or trying, it’s your numbers. They don’t tell you that. They go along thinking you’re doing all the right things and the guy with the 820 credit score, he’s like, “Why can’t I get funded?” You don’t fit their mold.

I was just going to say go to CreditSense.com and go to the expert articles, read those blogs. Go to YouTube/CreditSense and go to Facebook/CreditSense slash credits sense and read the feeds. You’re going to get all kinds of yummy stuff and watch the videos on YouTube. The idea is I’m trying to help. I have a Z just like you have a Z. My Z is to create a country full of professional borrowers that are not subject to the whims of lenders and they’re manipulations. How to partner with lenders rather than being manipulated or used to bite them. That’s my Z in the financial world.

We have a question, “If you have a bankruptcy on your record, does that make it impossible to get business funding?”

Not at all. It depends on the nature, the aging of that. Part of our recovery, we may be able to remove that either from the credit bureaus and or the LexisNexis, which is the data furnisher. There’s a number of ways that we can approach that. There’s no guarantee we can remove any negative account, derogatory account, but we can certainly overwhelm that negative account with positive profiles. I didn’t get to say this on the slide, but FICO measures 30 positive characteristics of a profile out of the 40 they measure. There are only ten derogatory indicators. That means there’s 30 ways to raise a profile without touching a negative account. We can overwhelm those negative with positive accounts, if we cannot remove it from the profile.

Doesn’t that also go into a positive reinforcement of why you would not close down lesser cards or older cards because as you grow and as your fundability grows, you have more overwhelming positive marks against that? They get buried.

There is a perfect revolving account portfolio, there’s a perfect installment loan portfolio, both together we call trade lines. There are perfect mixes that are going to be measured by FICO and underwriting software. You do not want to close anything except as we indicate and that we will only what we call high value cards versus low value cards, high value accounts, low value loans. We can make that mix overwhelm any derogatory account. I wish we had a bunch of clients going, “What they did for me.”

If any of you are on now, either in Facebook or in Zoom, if you’re in Base Camp, drop a message on that. If you’re willing to share your experience or what your goal was and what you accomplished or what you needed to accomplish to get there, because some of the things that they have you do feels a little strange. Very effective. When you start looking at it from a different perspective of, “My own personal stuff. No, it’s not you.” You do become a series of numbers and tick marks. The Credit Sense guys, they’re great at tracking out those points and going do this, do this, do this. I love this question. We get this every time. I should’ve led with this one because we’re getting close on time. “Can you elaborate on the red flags funding killer words? Does it aim that if we pick a company name, we avoid these words and we’ll get funding easier?” On the heels of that, they’re going to ask, “What do I do? My company already has notes, holdings, capital, assets.”

Weaponize Your Credit: Having the right kind of name and the right kind of business is not going to get you funding alone. It’s just a name.

First of all, having the right kind of name and the right kind of business is not going to get you funding alone. It’s just a name. What the red flag name say is, “I definitely am not giving you money. I will never give you unsecured business lines of credit.” If you have the right kind of SIC code and the right kind of organization, then they’re not saying, “I will never give it to you.” You’ve got to make your entity fully fundable as a non-note, buying real estate investing entity. I had a guy come to me and goes, “I got a gym company that I had been doing on the side.” You’re not going to get funded with a gym. The most fundable entities are all professional licensed individuals, doctors, dentists. Do you realize dentists are the number one fundable entity in America? It’s crazy. Then accountants, anything with a license can be fundable just because of the license.

Who wants a license? You’re subject to all manner of scrutiny but they’re the most fundable. Underneath that, I’m going to give it away, management companies, business consultants are the next fundable entity. You connect the dots but we want you to look spectacular in business as a management consultant, as a business consulting that separates you from all of your deals. You can coach and manage your deal companies, but we want you to be able to have your skill set, your ability to find deals, talk to people, do the accounting and bird dog your own deals. All those skills they will fund. Again, just calling yourself a management company is not going to get you funding. You’ve got to have a personal profile that is optimized. You have to have a business that looks smoking when an underwriter vets you. If you can do all that on your own, you are way ahead of 99.9% of humanity. I bless you. Send me an email when you’re successful and I would love to celebrate with you.

We have a question, “If real estate is in my business consulting name, is that not good?”

Not good at all. Get rid of it. Get an analysis. Get this thing done.

Wouldn’t it just be that you opened another entity? It doesn’t necessarily mean that you closed your existing entity?

Correct. There are strategies you have to have. You have to have aging with your entity. There are a bunch of steps in here. I’m here to tell you that it’s possible and that we could do it. Get to MyFICO.com, order that $29 credit report and you can send it to Info@CreditSense. Call us at 801-438-9090 or text. However you get there, get your analysis. The other person who’s going to do the analysis, if it’s not me, it’s Brad Burnett. He’s my Chief Funding Officer and the only other person you’re going to get an analysis with would be the Director of Funding. We take this seriously. You’re not getting some flunky to do your analysis. If we want you as a client, we want to make sure that you’re legit. We’re not going to take people who are going to fall off the wayside and not implement because that ruins my numbers and I’m all about.

You got to be coachable and you’re time’s going to pass anyway. Make it count for something, but it really is helpful and practical. I actually talked to Brad, he’s a cool dude. He’s very knowledgeable. Really, I don’t think anything quite fazes him. You can ask him all number of, “What about this, what about that scenario,” he goes, “We have a resource for that or we have a resolution for that or those are fun to go after.” Whatever you think, it’s not insurmountable.

We can pull you out of a 495 credit profile. It takes more time but what are you going to do? Fast track your fundability. Let’s get this thing done. The fire hose is officially off.

God bless, God speed. Have a fantastic rest of Note CAMP. Pay attention. If we do work together, I want you to be productive and not shooting yourself in the foot with the money we get together. Learn your trade. Be professional note buyers.

About Merrill Chandler

Over 20 years ago, consumer credit pioneer Merrill Chandler and co-founder of Lexington Law Firm (the largest credit repair law firm in the country) became dissatisfied with the results of credit repair. Leveraging his extensive knowledge of credit profiles and credit restoration, he developed a process that could ‘optimize’ credit profiles and scores. He founded CreditSense.com to deliver this revolutionary process to note buyers nationwide. Over the last 20 years, Merrill has helped thousands of borrowers create 800+ FUNDABLE credit profiles—and he can do the same for your members as well.